The chairman of First Security Islami Bank (FSIB) criticized the 2013 amendment to the Bank Company Act, which requires a 2% shareholding to become a director, claiming it has harmed banking governance and allowed influential individuals to dominate banks. This change, he argues, contributed to the current banking crisis by driving out experienced leaders and enabling a few wealthy families to control multiple banks. Since assuming his role on September 2, the chairman has been working to recover FSIB from financial distress, recovering Tk 350 crore in bad loans in three weeks. The bank’s total deposits are about Tk 45,000 crore, with classified loans nearing Tk 2,254 crore and non-performing loans at Tk 1,400 crore. The bank’s troubles stem partly from a concentration of deposits in just 200 borrowers, despite having over 29 lakh depositors. Efforts are underway to improve the situation, including Bangladesh Bank’s initiatives for liquidity support. The chairman is optimistic that the crisis will be resolved by October, with positive growth expected by November and December, assuring depositors their funds are safe.
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